Royal Bank of Canada on Wednesday announced that its audit committee has begun a process to recommend a single audit firm be appointed to audit the corporation’s 2004 consolidated financial statements.

The bank says the decision to recommend a single audit firm is driven both by consolidation and globalization among the world’s large audit firms and the importance investors and regulators place on auditor independence.

It says the successful audit firm will be engaged for audit and audit-related services, but not be eligible to provide non-audit services to RBC or its subsidiaries. RBC believes that a single external auditor can continue to serve shareholders’ interests while increasing the number of firms it can engage for non-audit and consulting services.

Deloitte & Touche LLP and PricewaterhouseCoopers LLP were appointed by shareholders in February to audit RBC’s 2003 consolidated financial statements. These two firms, in addition to KPMG LLP and Ernst & Young LLP, have been asked to submit proposals for consideration by the audit committee and the board of directors.

The board expects to complete its review later this year in order to publish its recommendation bank’s management proxy circular, to be filed with regulators and mailed to shareholders in January 2004.

Shareholders will vote on the board’s recommendation at the bank’s annual meeting scheduled for February 2004.